New Construction in DFW for Rental

[Joseph Phillip]

I would be curious if buying land (6-7K sq ft) and putting a new development(4bed 3 bath 2300 sq ft at $130 a sq ft) on it for rental would be a sound idea in the DFW market. I’m looking to hold my property for at least 8-10 years and the goal is to scale my portfolio - I’m playing the appreciation game so no too worried on cash flow.

would love perspective on if that’s a crazy approach for my first rental property vs buying an older home

[Patrick Bavaro]

@Joseph Phillip I can’t speak to DFW specifically, but a new build rental in this market is a great opportunity I think. Really just depends on what your costs will be. Currently I’m building a 4/3 new build in Cape Coral. Total all in cost is about $265k and I financed It at around 3.6% with 10% down. Rents right now are at about $2300 and climbing. Currently post construction appraisals are coming back at $340k-$410k depending on location of the property. If I play my cards right I will be able to do a cash out refi, still cash flow decently and take all my equity out to do it again. I’d be happy to connect to share experiences. Good luck!